Vipera Regulatory News (VIP)

For immediate release 26 April 2016

VIPERA PLC

("Vipera" or the "Company")

Preliminary Results for the Year Ending 31 December 2015

Vipera (AIM:VIP), the specialist provider of mobile financial software services, is pleased to announce its audited financial results for the year ended 31 December 2015.

Highlights

· Revenue up to €6.8 million (2014: €5.9 million)

· Net cash at period end of €3.2 million (2014: €1.0 million)

· 42 per cent. increase in revenues arising from the Company's Motif platform, mobile financial services and other digital projects

· Vipera's Card Control product publicly launched at Deutsche Bank

· Enlargement of deployment with Government Savings Bank of Thailand

· Launch of MyCartaBCC for Iccrea Group in collaboration with KPMG

· Equity fundraise of €3.7 million to provide a strong financial platform to execute on growth strategy

Post Period Highlights

· Marketing Partnership with ExperienceLab

· New release of Mashreq Mobile Banking Application

Marco Casartelli, CEO of Vipera plc, commented: "2015 has been one of successfully continuing revenue growth for Vipera. Our fundraising has assisted us to expand and invest into the sales and marketing teams, which we expect to lead to further new customer deployments and revenue growth in 2016 and beyond, further establishing the strength of our Motif platform".

Contact:

About Vipera:

Vipera Plc (AIM:VIP) a cutting edge Mobile Financial Services and Digital Customer Engagement Solutions provider, serves financial institutions worldwide with differentiated mobile banking, card management and customer engagement capabilities based around its proprietary bank grade multi-purpose platform, Motif. Additionally, it provides consultancy and other services to banks and financial institutions. For further information, please visit www.vipera.com

Overview

Activities and business review

Vipera provides software and services that enable mobile access to personal financial services and offers multi-channel mobility solutions for a range of banking, card management and other functionality ready for deployment by financial institutions, primarily banks. We also provide consultancy services focused on the technology needs of banks and financial institutions.

In 2015 Vipera continued its growth with revenues increasing from €5.9M to €6.8M. The results of the Group for the year are set out in the Consolidated Statement of Comprehensive Income on page 11 and the Consolidated Statement of Financial Position on page 12.

Revenues arising from the Company's Motif platform, mobile financial services and other digital projects increased by some 40%. This includes Transactional Revenue and Per User fees which started in the year with some blue chip customers such as Deutsche Bank in Germany. The addition of new customers and the development of existing relationships and projects, such as with the Government Savings Bank of Thailand, has led to a requirement to expand our project teams but notwithstanding this expansion, constraints in available skilled resource has led to some revenue being deferred into 2016.

Trading in the consulting business was relatively stable although revenues derived from third parties in this division fell by 13%. Part of this decline reflects an increased focus on projects related to the Motif and mobile financial services business segments.

In parallel, the Group has, using the Motif Platform, developed new customer services in the field of proximity marketing solutions during 2015 in the retail segment, which are expected to contribute more significantly in the 2016 financial year.

Your Board would, again, like to thank all of our staff and our business partners for their enthusiastic work and commitment during the year.

Strategy

The Group's core strategy is to provide and develop customised mobile solutions, operating both directly and also with local partners in key markets for distribution and system integration.

Deployments of solutions are subject to varying pricing models according to the needs of the customer, in common with normal practice in the systems solutions and payments industries.

A key milestone achieved in 2015 was the deployment of a retailer-orientated solution, broadening the product offering that has hitherto focussed on banks.

The Group continues to develop its customer proposition and remains confident that it is well placed to benefit from the fast evolving mobile financial services market.

Research and development

We have continued to invest in our product, creating enhancements in response to and in anticipation of trends in industry and technology, capitalising some €315k of expenditure. This has assisted us in the launch of a new release of the Mashreq Mobile Banking application in March 2016.

Financial review and key performance indicators

The Board considers that Group sales and the financial outturn for the year continue to be the key performance indicators and these are set out in the Consolidated Statement of Comprehensive Income. Increasing customer acceptance and market credibility has had a positive effect on sales which is our core performance measure.

Operating losses before provisions were slightly better than expectations. One particular customer had financial difficulties and was subsequently placed into administration during the year giving rise to a bad debt provision. Meanwhile, that customer has been replaced with other opportunities which are proving to be more promising for the Group long term. Following this, overall operating losses amounted to €631k. This was still an improvement on the prior year losses of €744k.

The Group loss before tax was €646k for the year ended 31 December 2015 (2014: loss of €762k); the loss per share was 0.33c (2014: 0.47c).

The growth of the Group has called for additional working capital. Accordingly, in June 2015 investors contributed €3.7M of additional capital after expenses through the issue of 59,711,111 new ordinary shares. This further strengthened our balance sheet.

Net cash as at 31 December 2015 was €3.2 million, which will allow for continued investment in product development and to support the working capital needs of the Group.

Future developments

Vipera works closely with strategic partners to broaden its customer reach and to continue to develop new functionality that both takes advantage of advances in technologies, and identifies with customer and end user needs. The Group is seeking to continue to expand its team to help execute its plans. Meanwhile it has already, in 2016, entered into a marketing partnership with ExperienceLab and gone live on the new release of the Mobile Banking application installed at Mashreq.

Consolidated Statement of Comprehensive Income

For the year ended 31 December 2015

Consolidated Statement of Financial Position

As at 31 December 2015

Consolidated Statement of Changes in Equity

For the year ended 31 December 2015

Attributable to equity shareholders

Consolidated Cash Flow Statement

For the year ended 31 December 2015

Notes to the Financial Statements

For the year ended 31 December 2015

1 Basis of preparation

The financial information has been prepared in accordance with International Financial Reporting Standards ("IFRS"), and International Financial Reporting Interpretations Committee ("IFRIC") interpretations and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.

The preliminary announcement for the year ended 31 December 2015 was approved and authorised for issue by the board of directors on 25 April 2015.

The financial information set out in this preliminary announcement does not constitute audited financial statements for the year ended 31 December 2015. The financial information for the year ended 31 December 2014 is derived from the statutory accounts for that year which have been delivered to the Registrar of Companies. The auditors reported on those accounts: their report was unqualified and did not draw attention to any matters by way of emphasis and did not contain a statement under s498 (2) or (3) Companies Act 2006 or equivalent preceding legislation.

The financial information for the year ended 31 December 2015 is derived from the statutory accounts for that year which will be posted to shareholders and delivered to the Registrar of Companies. The auditors reported on those accounts: their report was unqualified and did not draw attention to any matters by way of emphasis and did not contain a statement under s498 (2) or (3) Companies Act 2006 or equivalent preceding legislation.

The financial information set out in this preliminary announcement does not constitute statutory accounts as defined in Section 434(3) of the Companies Act 2006.

The Group financial statements are presented in Euro's ('€') and to the nearest Euro. The Group expects to transact more of its business in Euro than any other currency, is also the functional currency of the Group.

2 Total revenue and segmental analysis

IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision-maker ("CODM"), being the Chief Executive Officer, and the Chief Financial Officer to allocate resources to any segments and to assess their performance. Given the size and straightforward nature of the business, Management considers there to be a single activity, being the provision of software and associated services, substantially operating in one market: financial services in Europe and Middle East. Accordingly, segmental analysis is reflected in the consolidated group statements set out herein.

* in 2014, the third largest customer represented less than 10% of turnover.

3 Tax

Factors affecting the tax credit for the year

The tax for the year is higher (2014 - higher) than the standard rate of corporation tax in the UK applied to the Group loss before tax of 20% (2014: 21%). The difference is explained below:

Factors affecting the tax charge of future periods

Tax losses available to be carried forward by the Group at 31 December 2015 against future taxable profit are estimated to comprise excess management expenses of approximately €1,838,539 arising in the UK and trading losses of approximately €2,037,107 arising in Switzerland. In addition, capital losses of approximately €2,761,774 arising in the UK are available to be carried forward.

A deferred tax asset at 20% amounting to approximately €368,000 (31 December 2014: €329,000) has not been recognised in respect of accumulated realised losses in the UK (excluding capital losses), as there is insufficient evidence that the asset will be recovered in the foreseeable future. There were no other factors that may affect future tax charges.

4 Earnings per share

Basic earnings per share has been calculated by dividing the loss attributable to equity holders of the company after taxation by the weighted average number of shares in issue during the year. There is no difference between the basic and diluted earnings per share as the effect on the exercise of options and warrants would be to decrease the earnings per share.

Since the year end, no warrants have been exercised which may result in the dilution of the earnings per share in the future. Details of share options and warrants that were anti-dilutive but may be dilutive in the future are set out below.

5 Goodwill

Impairment Tests on Goodwill

The recoverable amount of the goodwill in Codd & Date Srl is determined based on value-in-use calculations. These calculations use pre-tax cash flow projections, based on financial budgets approved by management covering a one-year period. Cash flows beyond the one-year period are extrapolated using the estimated growth rates stated below.

The key assumptions used for value-in-use calculations in 2015 are as follows:

Management determined budgeted gross margin based on past performance and its expectations of market development. The average growth rates used are consistent with the forecasts included in industry reports. The discount rates used are pre-tax, and reflect specific risks relating to the relevant operating segment.

The recoverable amount calculated based on value in use exceeded carrying value by €0.6M. A reduction in gross margin to 16.2%, a fall in growth rate to 3.7% or a rise in discount rate to 13.5% would remove the remaining headroom and therefore trigger an impairment.

6 Intangible assets

The above intangible assets comprise investment in the development of Vipera product platforms. All research and development costs not eligible for capitalisation have been expensed.

During the year, Vipera GmbH transferred its intellectual property to Vipera plc at the Group's book value.

During the year, an impairment review as to specific components of the capitalised research and development costs gave rise to an impairment provision amounting to €3,243 (2014: €201,241).

The recoverable amount of the above cash-generating unit has been determined based on value in use calculations. The value in use calculations use cash flow projections based on financial projections approved by Management covering a five-year period. These incorporate contracted revenues, revenues which are based on project tenders and projected revenue. Given the nature of the work and the visibility of revenue in the future, it is considered appropriate not to extend the discounted cash flow workings beyond this period. Probabilities have been assigned to revenues, net of direct costs, based on the anticipated success - a rate of 60-90% has been applied to work which is contracted or from repeat customers, versus 60% applied to projected work from new customers. A discount rate of 15% has been used in the calculations, being an uplift on the discount rate used in assessing goodwill which reflects the business as a whole rather than the IP element alone. A reduction in the projected revenues by 68% would remove the remaining headroom and give rise to the recognition of a further impairment charge against profit or loss.

7 Deferred taxation

Deferred tax assets are recognised on tax losses carried forward to the extent that the realisation of the related tax benefit through future taxable profits is probable.

The movement in deferred tax assets and liabilities during the year is as follows:

The movement in deferred tax assets and liabilities during the prior year was as follows:

8 Trade and other receivables

Trade receivables

Included in the Group's trade receivables are debtors with a carrying amount of €461,656 (2014 - €848,229) which are past due at the reporting date against which the Group has provided €439,575 (2014 - €65,428) to reflect changes in credit quality and recoverability.

The carrying amount of the Group's trade receivables are denominated in the following currencies:

The maximum exposure to credit risk at the reporting date is the carrying value reported above. The Group does not hold collateral as security. The carrying value of trade and other receivables is a fair approximation of their fair value.

9 Trade and other payables

10 Borrowings

Borrowings represent sales invoices, in Italy, denominated in Euros, which have been discounted at a floating borrowing rate of some 3.5% and are repayable upon collection of such invoices. At 31 December 2015, there was some €400,000 of unused invoice discounting facility available.

The fair value of the current borrowings equals their carrying value, as the impact of discounting is not significant. The fair values are based on cash flows discounted using a rate based on the borrowings rate of 5%.

11 Called up share capital

On 10 June 2015 the Company issued 59,711,111 new ordinary shares of 1p each at 4.5p per share. On 22 July 2015 and 7 December 2015 the Company issued 319,543 and 1,451,674 shares respectively pursuant to the exercise of warrants at 3p per share.

The Ordinary Shares entitle the holders to receive all ordinary dividends and all assets on a winding up, subject only to satisfying the entitlement, if any, of the holders of the Deferred Shares.

A Deferred Share does not entitle the holder thereof to receive notice of or attend and vote at any general meeting of the Company or to receive a dividend or other distribution or to participate in any return of capital on a winding up other than the nominal amount paid on such shares once the holders of new Ordinary Shares have received a distribution of £10,000,000 per new Ordinary Share.

12 Events after the Reporting Period

No adjusting or significant non-adjusting events have occurred between the reporting date and the date of authorisation.

-Ends-